By: Chris Kramer
March 08, 2011
Less than a month after stating that there was abuse detected in former East Chicago Mayor Robert Pastrick's Chapter 7 bankruptcy filing, the trustee on the case has reviewed additional documents and concluded that his initial judgment was incorrect.
The 83-year-old Pastrick initially filed for Chapter 7 bankruptcy in December after the state of Indiana attempted to collect on a $108 million civil judgment for racketeering, according to the Northwest Indiana Times. In February, the bankruptcy trustee assigned to the case stated that there was abuse detected in Pastrick's filing. After issuing this statement, he reportedly had 30 days to either dismiss the filing or convert it to a Chapter 13 bankruptcy, which would require Pastrick to be subject to a repayment plan lasting several years.
After reviewing additional documents, the trustee has decided not to take either action, and to allow the case to proceed under Chapter 7 of the bankruptcy code. Meanwhile, Indiana Attorney General Greg Zoeller continues to maintain that the civil judgment for racketeering cannot be discharged by bankruptcy, according to the news source.
According to The Associated Press, the 2004 federal racketeering charge against Pastrick accused him of spending $24 million in public money on residents' driveways, sidewalks and walkways in an attempt to gain their support.